I use a DYMO LabelWriter Turbo 330 and highly recommend it. I personally use it with the 1 1/8" x 3 1/2" address labels and 1/3 cut file folders.

You can use the DYMO label software that comes with the printer or you can download the free Avery DesignPro software. I use both.

The DYMO software can be set up to work with several popular contact management software packages. This allows for the printing of individual address labels directly from your contact management package.

The Avery DesignPro I use because I like to keep all my labels in databases. My business requires that I keep extensive archival and reference files for each project we are involved with, and keeping labels in a database makes it simple to create new labels, since the other labels in the DB provide the context.

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I used to switch. Now I find that regular Address labels work perfectly as file folder labels (with 1/3 cut file folders). Depending on one's filing method, Address labels allow more space to better categorize a folder.